TedBits Weekly Wrap

This week has not been sleepy when it comes to the news. It feels like a firecracker
out there just waiting for a match in my opinion. There have been too many
issues to cover them all but here are a few TedBits for you:

Surrender

GDP collapse

Explosive divergence between volume and price

MORAL HAZARD written large

Leverage peak in stocks?

SOME People aren't DUMB

EU elites pull another FAST ONE

Surrender

One hundred years ago this week World War I commenced and the specter of World
War III is at our doorstep. Secretary of State John Kerry unilaterally surrendered
to ISIS in Iraq by stating unequivocally to regional powers that the conflict
will not be solved by military means. The very idea that ISIS will sit down
at any table and peacefully resolve any issues is a fairytale. The ISLAMIC
Caliphate is on a mission from GOD and will not be dealing with infidels in
any manner other than their demise or the threat of their own demise. It is
as simple as that. As I have said previously: World War III has commenced,
it just hasn't been publically admitted yet. Kerry's statements are the height
of irresponsibility to the American people.

GDP collapse

Yesterday's revision to GDP was a nightmare on Main Street both on the headline
number and internally looking at its components. Originally called at up 2%,
then the first report of up .1%, first revision was down 1% and this revision
taking it to down 2.9%. We were told over and over it was the weather. NOPE.

Look closely at the HORROR show the revision has been. It was a collapse in
healthcare spending as a result of OBAMACARE (healthcare spending down over
6%), a collapse in private investment, a surge in imports (surge in liabilities)
and a collapse in exports (collapse in income and sales). FOUR knock out blows
to Keynesian linear thinking and highly questionable projections of a recovering
economy. The economy is real terms is not recovering, in nominal terms the
piles of debt and leverage keep expanding and then called GROWTH.

This is tens of billions of dollars economic activity that has disappeared.
It foreshadows the coming bailout of the health insurance industry as its business
is collapsing from the GOVERNMENT MANDATED policy cancellations in 2013 that
HAVE NEVER RETURNED. Obamacare is higher priced and delivers much less services.
Private sector investment will not return as there is no reward for doing so.
Why would a company or individual invest when there is no INCOME GROWTH after
real inflation? Incomes and revenues must rise for investment to become attractive.
It's why M&A is on FIRE, it is easy to buy existing business and customers
rather than BUILD NEW ONES. Why would an entrepreneur risk his hard earned
dollars, blood, sweat and tears to get to a level of success over $250,000
dollars a year when he or she can expect the taxman to confiscate it as soon
as he reaches success? Washington has removed the incentives to produce. We
are its vassals not its master.

Add to this, Dodd Frank restricting credit to the private sector, mandated
health care benefits, EPA attacks on affordable energy and the hoax of climate
change, the affordable care act and its 20 new taxes, runaway regulations of
the small business sectors. Most readers don't understand the damage done by
the regulators. As Cicero once said:

"The more corrupt the state the more it legislates."

You can extend that to regulation which is a result of the laws. This administration
learned its craft at the knee of Richard Daly and the Chicago style of POLITICS.
Everything in the United States has been on sale to the highest bidder for
the last 6 years since the chosen one was elected in 2008 with supermajorities
in Congress. Pay the right price and that business becomes the turf of the
crony capitalist who PAID UP. The regulations regulate the demand to their
cronies and place impossible hurdles in the path of the entrepreneurs who wish
to knock off the crony's by providing more for less. People aren't stupid contrary
to Washington's belief. They can spend their money, choose what's right for
themselves and their families in a far wiser manner than a bureaucrat or would
be mandarin in the District of Corruption.

So they try and pass a law or regulation removing your ability to choose for
yourself. It is an epidemic of INCONSTITUTIONAL government.

The world is unraveling at an astonishing pace. Today I will call it chart
porn day. That is a day when we look at charts. Make brief comments and thoughts
about them and move on to the next thought and chart.

Explosive divergence between volume and price

The first chart is brought to us by www.Zerohedge.com and
it is an overlay of the vix gauge which has become totally disconnected from
an perception of risk by options writers and investors complacency levels about
negative events impacting the stock market such as the rise of the caliphate
in Iraq;

Talk about a bear market in trading volume since the peak before the financial
crisis commenced. It should also be noted that as bad as the collapse in participation
has been in reality it is much worse as High Frequency traders account for
50 to 70% of the trading on any particular day. I promise you that if the markets
start to crash those programs will stop trading and liquidity will be reduced
accordingly (50 to 70%). A mighty small door for weak handed investors that
have entered late to exit. It doesn't matter whether it is the bond markets
or stocks the exits in event of a moment of panic appears very very small to
me.

MORAL HAZARD written large

Moral Hazard and Complacency is at epidemic levels. Investors and Markets
are TOTALLY DISCONNECTED from reality and potential risks in the global markets.
They believe central banks will do anything NECCESARY to support asset values
and stock markets. It is actually a correct assumption in my opinion. This
is why the Middle East and ISIS taking over IRAQ dealt no blows to the markets?
Let's keep in mind that between the Federal Reserve and the Bank of Japan 110,000
million dollars is being printed each MONTH. QE is, has and will be the dominant
investment theme for the foreseeable future from one central bank or another.

"The best way to destroy the capitalist system is to debauch the currency.
There is no subtler, no surer means of overturning the existing basis of
society than to debauch the currency. By a continuing process of inflation,
governments can confiscate, secretly and unobserved, an important part
of the wealth of their citizens. The process engages all of the hidden
forces of economic law on the side of destruction, and does it in a manner
that not one man in a million can diagnose." - John Maynard Keynes,
1920

The BIS has reported that Thirty Trillion dollars of new debt (30 million
million) has been created since the Global Financial Crisis struck in 2008
and this is a picture of it in ACTION. Powerful medicine for insolvent sovereigns,
financial and mortgage markets and that money now sits in accounts around the
world looking for YIELD and opportunity. All in short supply in a world where
growth is OUTLAWED by socialist governments disguised as DEMOCRACY.

The Federal Reserve has gone to great lengths over the last 3 years EMPHASIZING
that financial system stability is firmly one of their mandates along with
unemployment and inflation. We inhabit asset backed economies with Reserveless
banking systems. A move similar to 2008 will BANKRUPT the biggest financial
players in banking, institutions, pensions and insurance. This anomaly and
perception of a goldilocks economy and market will get eaten by the three bears
before this latest episode in runaway leverage resolves itself. When this leverage
fails.... THEY WILL PRINT THE MONEY.

Leverage peak in stocks?

Margin debt has always peaked before major market tops and we are now into
month five since the margin peak was seen. This chart was done by www.dshort.com;

Using data compiled by Lance Roberts of STA wealth advisors. Lance and Doug
are some of the finest chart makers on the web and their work must always be
kept in mind. Both are Keynesians and accept official numbers as accurate.
The message at this time; be afraid, be very afraid. We are positioned out
on a limb rarely seen in history and more extreme then the times preceding
the last two crashes in 2000 and 2008. Do you really think it is different
this time? Janet Yellen has yet to be challenged as the last several New fed
chairs have. It is her turn for a trial by FIRE. Keep in mind the collapse
in REAL TRADING volume shown above. The exits are quite SMALL..... Don't yell
fire in the theatre.

SOME People aren't DUMB

The Gallup polling group has recently released an updated poll outlining just
who people do and don't have confidence in and the results are predictable,
and signal the great disconnect between the elites which CONTROL our country
and society and those that SERVE it. This poll gives me great HOPE! The public
has nailed it:

Those are all time lows for the scoundrels in Washington DC (district of corruption).
Right behind them are the scoundrels in the main stream media who have completely
betrayed their responsibility to report on critical issues and keep the public
informed. News on the internet I have to disagree with as I believe the internet
news is covering the issues that are blacked out by the main stream media.
To me the internet is a great big plus in exposing the bad boys and creating
the means for the public to unite against them without being impeded by them.
Social media I DESPISE, ultimately it is poison and is the modern version of
bread and circuses of ancient Rome. It is not social, it is anti-social in
my opinion. Then we see CRONY CAPITALISTS and BIG LABOR, both ENEMIES of the
public at large. In a capitalist economy the bottom line is more goods and
service for less money. When those two groups are involved it is exactly the
OPPOSITE: less goods and services for more money. Look at all the groups at
the bottom of the list. These people know who the bad guys are. Banks and public
schools: one creates debt slaves of us all and the other dumbing down the population
so they can be victims of the system the elites have created.

Author's
Note: In my opinion the greatest manmade disaster and OPPORTUNITY in
history is unfolding in every corner of the world. Are you diversified or
operating with EYES WIDE SHUT? Are you prepared to turn it into opportunity
by properly diversifying your portfolio? Adding absolute return investments
which are designed with the potential to thrive (up and down markets) regardless
of what unfolds economically or politically? This is what I do for investors;
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The most trusted groups are under constant attack from those least trusted.
The administration is completely aligned AGAINST small business, the military
and the church. The police I will withhold comment on as I believe they have
been DEEPLY compromised by the group at the bottom. Look no further than the
Boston bombing when local police imposed MARTIAL LAW on the city of Boston.
Thai is a glimpse of what has been PUT IN PLACE. Do they serve the public they
are sworn to protect or central GOVERNMENT that no longer does so? Regardless
of what the headlines say social unrest lays directly ahead. The group at the
bottom will both restore freedoms and allow people to prosper OUTSIDE their
grasp or be DETHRONED!

EPA overreach and the Supreme Court

The Supreme Court yesterday stopped a large expansion of the EPA'S regulatory
overreach but left in place existing expansions from the last 6 years GARANTEEING
skyrocketing electric prices. The recent new EPA rules are the administration's
attempt to create laws without the support of congress. Check out this video
of the president before he was elected in a rare moment of candor:

Who remains affected by his insanity?

The recent rule changes will dramatically escalate prices, rolling blackouts
can be expected as coal powered electricity is OUTLAWED by EPA DECREE. Once
in motion these regs will take on a life of their own. Where are our elected
representatives? They stand in line for the campaign contributions while doing
nothing to stop this UNCONSTITUTIONAL POWER GRAB!

Supporting them is another group of socialists in disguise and a predictable
group of PREDATORS: Hank Paulson, Robert Rubin, Michael Bloomberg and Tom Steyer.
FEAR PEDDLERS, we must do this to SAVE YOU. Their group calling themselves
the RISKY BUSINESS report published the latest propaganda piece for the taxman
in disguise. A group consisting of crony capitalists and politicians aligned
against your freedom and prosperity to line their pockets with the money you
will pay to prevent the HOAX of human caused climate change.

Here is there projection of the climate in America over the next 90 years
based upon their MODELS:

They want to control location of facilities, create flood defenses and sell
insurance to you and paid by you to themselves, crony capitalists of the worst
sort. These people are politically correct and practically incorrect giving
the intellectual underpinnings for morally corrupt politicians to SCREW YOU!
Energy and electric prices are set to SKYROCKET and the president is keeping
a campaign promise....

EU elites pull another FAST ONE

Most people don't understand what the EU project is. It is a exercise in unaccountable
government and imposition of socialism disguised as a blessing by the main
stream media, crony capitalists, trade unions and public servants. The presidency
of the EU is subject to heated debate as the UK wants to prevent arch federalist
Jean Claude Juncker from ascending to power without the consent of the governed.

It is an inside job lead by Angela Merkel of Germany and Francois Hollande
of France.

Cameron is in the hot seat as the UKIP independence party cleaned his and
labours clock in recent European parliamentary elections. Powerful shots across
the bows of politicians who bow to Brussels rather than look after the interests
of the British people.

"The Brits remain allergic to the idea of political union in Europe,
believing that democratic legitimacy is rooted in the nation-state. The
German political establishment - particularly on the centre-left - remains
wedded to ever closer political union for Europe." - Gideon Rachman

EU commissars have placed the financial community in London firmly in their
sites. Instituting laws and regulations which will FORCE banking business from
the city to EUROPEAN capitals. All without one bit of input from the citizens
of the UK or any other EU government they issue decrees to. Can you say unaccountable
bureaucrats/politicians/government? Loss of Freedom? Confiscation of income
one way or another? Controlled by shadowy elites... This RAILROADING of Juncker
into the leading role of the federalists is occurring as you read this.

In closing: Whenever you see or hear the word DEMOCRACY used by politicians
substitute the word socialism/communism and then you can understand the REAL
meaning of their words. Total dominance by central governments is the end zone
for these would be socialists. Quoting Lady Thatcher:

Socialists cry "Power to the people", and raise the clenched fist
as they say it. We all know what they really mean -- power over people,
power to the State."

That is the dirty little secret of progressives throughout the developed world.
They say they are for you, no, they are for power over you. Government controlling
every part of your lives especially YOUR MONEY. Totalitarians in drag.

The world is kept afloat by one means and one means only: printing
money and creating debt (pretending it is good as gold) out of thin air.And
recycling the cash and adding more like every Ponzi scheme in history. It is
actually the greatest opportunity in history if you know and can apply Austrian
economics to your investing. Most people can't and we are just waiting for
the LEVERAGE to FAIL. It has never failed to do so in the past and it won't
fail to do so in the future. If you are a high net worth individual feel free
to contact me CLICK HERE.

A perfect storm is brewing when it strikes only GOD knows. I
hope you liked this roundup. It is actually posted daily on my AUSTRIAN blog
at www.Tedbits.com along with thousands
of other thought provoking articles for mental body builders. Check us out CLICK
HERE.

Tedbits is authored by Theodore "Ty" Andros, and is registered with TraderView,
a registered CTA (Commodity Trading Advisor) and TraderVest Clearing LLC a
GIB (Guaranteed Introducing Broker). He currently is the principle of TraderView,
a managed futures and alternative investment boutique. Mr. Andros began his
commodity career in the early 1980's and became a managed futures specialist
beginning in 1985. Mr. Andros duties include marketing, sales, and portfolio
selection and monitoring, customer relations and all aspects required in building
a successful managed futures and alternative investment brokerage service.
Mr. Andros attended the University of San Diego, and the University of Miami,
majoring in Marketing, Economics and Business Administration. He began his
career as a broker in 1983, and has worked his way to the creation of TraderView
of which he is the CEO. Mr. Andros is active in Economic analysis and
brings this information and analysis to his clients on a regular basis. Ty
prides himself on his personal preparation for the markets as they unfold.
Developing a loyal clientele.

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